Bowness On Windermere leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Bowness On Windermere will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Bowness On Windermere with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a freeholder in Bowness On Windermere,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bowness On Windermere valuers.
Last October Ibrahim, came seriously near to the 80-year threshold with the lease on his purpose- built apartment in Bowness On Windermere. In buying his property 18 years ago, the unexpired term was of minimal concern. As luck would have it, he recognised he needed to take steps soon on a lease extension. Ibrahim arranged for a lease extension at the eleventh hour last April. Ibrahim and the landlord in the end settled on an amount of £5,500 . If the lease had dipped lower than eighty years, the figure would have gone up by at least £1,000.
Last month we were called by Dr T Gunderson , who purchased a basement flat in Bowness On Windermere in April 2001. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparable properties in Bowness On Windermere with 100 year plus lease were valued around £252,800. The average amount of ground rent was £65 invoiced quarterly. The lease ended in 2090. Given that there were 65 years outstanding we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including professional charges.
In 2010 we were phoned by Mr and Mrs. Y Clark who, having was assigned a lease of a ground floor flat in Bowness On Windermere in October 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable premises in Bowness On Windermere with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 collected annually. The lease expired in 2079. Having 54 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of costs.